U.S. consumer technology will have year-over-year revenue declines of 6% this year and 3% in 2023, according to market research firm The NPD Group. Revenues will remain above 2019 levels due to higher average selling prices (ASPs), the firm says.
NPD also says that approaching the holiday season, we will see consumer technology industry revenue down compared to last year, but 11% higher than for the same period in 2019.
NPD Group’s “Future of Technology” forecast found that “tremendous” sales last year and in 2020 and 2021 will lead to near-term declines in computer sales. The firm expects positive news during the holidays for TVs, tablets, “true” wireless headphones and home automation products.
Year over year TV unit sales increases of 9% are expected, as prices fall and deeper promotions are offered. Declining ASPs will lead to year-over-year unit growth of 11% for tablets and 3% for true wireless headphones.
Home automation holiday unit sales are expected to grow 5% year over year. The rollout of the Matter standard will help by making products more compatible and easier to set up, executive director and technology industry analyst Ben Arnold said in a press release. Sales of smart doorbells and item trackers will grow during the fourth quarter, he said in a press release
“For the last two years consumers have relied on technology products to make their lives more comfortable and convenient while many worked, learned, and entertained mostly from home,” Paul Gagnon, NPD Group’s vice president and industry advisor, said in the press release. “Rather than waiting for promotions, or in some cases specific products, they bought what was available when they needed it. But as consumers return to more ‘normal’ behaviors and schedules, we are seeing a shift back to pre-pandemic purchase patterns and believe consumers will once again be seeking out holiday deals this Q4.”